Semester Exam Financial Lit

The total money one gets to “take home” from a paycheck after taxes and deductions are taken out is known as what?

• Gross pay

• Federal income tax

• State income tax

• Net pay

Which of the following is the form employers use to determine how much tax to deduct from a paycheck?

• W-2

• W-4

• I-9

• W-9

Which of the following is the form an employer provides to an employee to inform them of how much money was deducted from paychecks in a given year?

• W-4

• I-9

• W-2

• W-9

Which of the following statements best describes gross pay?

• Amount of money one receives from insurance after an illness or accident

• Amount of money one receives from their job before taxes or other deductions are taken out

• Amount of money one receives from their job after taxes or other deductions are taken out

• Amount of money one earns from their job by overtime, bonuses, and reimbursements

When seeking to open a bank account, which of the following is needed?

• Blank checks

• Government-issued identification

• Recommendation letter

• School transcript

When one is seeking to purchase a product at a store, what additional cost must be paid in addition to the listed price of the product?

• Insurance

• Interest

• Purchasing fee

• Sales tax

Which of the following best describes the concept of APR?

• Summary of all credit card transactions in one month

• The maximum amount one can charge on their credit card

• The fee charged if a credit card payment is late

• The credit card interest rate, calculated on a yearly basis

Which of the following is a financial institution that handles money, including keeping it safe for saving or commercial purposes?

• Payday lender

• Bank

• Check cashing service

• Pawn shop

When one receives a product or service now, but pays for it later, it is known as what?

• Credit

• Debit

• Deduction

• Interest

Which of the following purchasing cards removes funds from one’s checking account almost instantly after one makes a purchase?

• Credit card

• Debit card

• Payroll card

• Withdrawal card